EUR/USD lacks drivers

EUR/USD remains range-bound, with any dollar strength tempered by some fairly benign comments from Fed chairman Ben Bernanke which ultimately leave the door open for tapering of quantitative easing later this year.

Decisive drivers are also lacking for the euro. Once again we see evidence that a two-speed Europe is in operation, with Italian May industrial orders falling by 0.1% in the month and 5.1% year-on-year.

The 1.3180 level provides resistance for EUR/USD, with any breach likely to target and run out of steam around 1.3320.

For now, we are seeing support arising from the 50 DMA around 1.30. However, this level isn’t pivotal, given how often it has failed over the past few weeks. The key support lies at 1.2970, then below that around 1.28.


Spot FX EUR/USD chart

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